Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: JungleInvestor who wrote (41605)	4/5/1999 8:40:00 AM
From: BigBull	Read Replies (2) of 95453

Jungle, I HATE buying options, I LOVE selling them! Someone once did a study that showed that 80 - 90% of all options expire worthless. Sound like casino odds, and I'd rather be the house. If you do buy, then make sure you have some sort of options valuation software that will make sure you don't pay too much. The Black-Schoales model used to be the standard in options valuation math back when I was playing with options. If I was going to buy options I'd only do it in the highly liquid issues like SLB or HAL. Trying to trade illiquid options is good for at least a one year prescription of Valium. If you are quick and are a technical trader I MIGHT consider selling naked puts against against a stock I really really like. But make sure you really really like it, cause you may wide up owning it. But if you really really like it, why not just buy it? I mean, the price of stocks like FLC are sooo cheap it's like the price of AMZN 1 month out of the money calls. My view is that buying calls is really a day traders game. Why not just daytrade the stocks, if you need the excitement. Better yet, get drunk and go to the track, you'll have more fun losing your money.

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